Half of US Homeowners Under 50 Feel Trapped in Their Homes Due to Mortgage Rates, Survey Finds

A 5-Step Guide for New Youngstown Homeowners
Pexels

Half of all homeowners in the United States said they feel trapped in their current homes due to the elevated mortgage rates and affordability issues.

That is according to a survey conducted by Edelman Financial, which polled 3,008 Americans who were at least 30 years old. The survey was conducted between June 12 to July 3 this year.

The survey found that 49% of homeowners under the age of 50 feel stuck in their current home due to high interest rates. Counting all homeowners in the US, the poll found 36% feel trapped in their current properties.

Current Mortgage Rates

After a six-week climb, mortgage rates have fallen for both the 30-year and 15-year terms. That said, the rates remain elevated when compared to the rates before the COVID-19 pandemic.

As of the week ending Nov. 14, the rate for the 30-year term was 6.78%, while the rate for the 15-year term was 5.99%, according to Freddie Mac's Primary Mortgage Market Survey. Elevated rates, coupled with high home prices, are pushing many buyers out of the housing market.

For perspective, the median sale price of a typical single-family home in the US is $435,051 as of October, per data from Redfin. That is 5.2% higher than the price in the same month in 2023.

Housing Affordability Crisis

With mortgage rates so high, nearly three-quarters (72%) of homeowners, including 81% of those under the age of 50, said they were concerned, the survey noted.

In addition, 25% of Americans said they are not able to live where they want because of financial concerns. At least 21% also said they are not able to afford to buy the house they want or to renovate their current home.

Due to financial challenges, 41% of homeowners said they would be willing to relocate to another state entirely in order to save money. This figure goes up to 56% among homeowners in their 30s; 44% among those in their 40s; and 46% among those in their 50s.

Join the Discussion
Real Time Analytics